1. The above data is filled based on the company's consolidated statements.

2. During the reporting period, Dahua made corresponding accounting treatment on matters in relation to repurchase and write-off of certain restricted stocks. The total share capital of Dahua had been changed from 2,899,411,405 shares to 2,898,756,130 shares.

Operating Performance and Financial Status

The increase resulted mainly from the following factors: the market sentiment continued to rise; the company expanded the market and met new demands with enhanced comprehensive solutions and services; the company strengthened internal control to achieve steady growth in sales and simultaneous growth of net profits.

During the reporting period, the total company assets increased by 40.05% and the net assets increased by 27.09%, mainly due to the increase in the scale of operations and rising profits.